able to prevent a state takeover itself by "putting the village on a diet." The village of Three Oaks was taken over by an EFM but has since had power returned to village officials.

The bill package creates a process for early state assistance to prevent bankruptcies and defines the circumstances under which a local unit can return from a state of fiscal emergency, according to Pscholka. In the event that a manager does need to be appointed, that manager would have the authority to renegotiate contracts, sell assets, set minimum staffing levels and enter in consolidation of service agreements. The state would then have the ability to get involved in employees' collective bargaining agreements with the municipality.

Early intervention could be, but not be limited to, state reviews if the municipality or government agency has been making late payments of bills, late payment to other municipalities, deficits occur, or nonpayment of pensions.

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"The whole idea of the bill is we don't get there," Pscholka said. "We try and make it easier for locals to work for the department of treasury."

An aspect of Pscholka's original bill before it was amended in the House called for a 10-year ban of elected officials currently in office if a state takeover is authorized. It was amended down to six years before being taken out of the bill altogether.

However, Pscholka said the legislation the way it stands now would basically strip all powers elected officials have. A section also says the board, once the EFM leaves, cannot touch a budget for two years that had already been put in place.

"It gives the EFMs a little more power," he said. "The local board has no authority."

Pscholka said the current law makes it "very hard for any emergency manager to be able to do the job."

Another important aspect of the bill, according to Pscholka, is that expenditures by an emergency manager have to be posted on a website "so everyone can see it." Any asset more than $60,000 has to be approved by the state treasurer.

In Benton Harbor, Pscholka said, significant financial problems and funding mismanagement over the course of several years led to an EFM.

"The local officials (there) have not been cooperative," he said. "They're just trying to impede the emergency manager's work.

"This is not about personalities to me. This is simply about finances and accountability and protecting taxpayers."

Some Benton Harbor officials, including Mayor Wilce Cooke, came to Lansing this week to testify against the legislation.

Neither Cooke nor EFM Harris have returned several messages seeking comment over the past several months.